This document contains an income statement and journal entries for Potter Capital. The income statement shows net income of $65,000 for the period. Journal entries were made to close revenues of $181,000 to income summary, close expenses and other accounts totaling $116,000 to income summary, and close the $65,000 net income to the Potter Capital account. A final entry closed $42,000 in withdrawals from Potter Capital.
This document contains an income statement and journal entries for Potter Capital. The income statement shows net income of $65,000 for the period. Journal entries were made to close revenues of $181,000 to income summary, close expenses and other accounts totaling $116,000 to income summary, and close the $65,000 net income to the Potter Capital account. A final entry closed $42,000 in withdrawals from Potter Capital.
This document contains an income statement and journal entries for Potter Capital. The income statement shows net income of $65,000 for the period. Journal entries were made to close revenues of $181,000 to income summary, close expenses and other accounts totaling $116,000 to income summary, and close the $65,000 net income to the Potter Capital account. A final entry closed $42,000 in withdrawals from Potter Capital.
Mehran Haider 20732 Presented to: MaM Dr Qurat ul Ain
Income Statement
Sales Revenue $181,000
Less: Sales Discounts 2,000 Sales Returns and Allowances 3,500
Net Sales Revenue $175,500
Cost of Goods Sold 72,400 Gross Profit 103,100 Operating Expenses: Administrative Expenses 18,000 Selling Expenses 19,000 Total Operating Expenses 37,000 Operating Income 66,100 Other Revenue and (Expenses) Interest Expense 1,100 Total Other Revenue and (Expenses) 1100 Net Income (Loss) $65,000
Journal Entries
Date Accounts and Explaination Debit Credit
Jun. 30 Clos. (1) Sales Revenue 181,000 Income Summary 181,000 To close revenues. Jun. 30 Close. (2) Income Summary 116,000 Interest Expense 1,100 Administrative Expenses 18,000 Selling Expenses 19,000 Sales Returns and Allowances 3,500 Sales Discounts 2,000 Cost of Goods Sold 72,400 To close expenses and other debit accounts. Jun. 30 Income Summary 65,000 Clos. (3) Potter, Capital 65,000 To close Income Summary.
Jun. 30 Potter, Capital 42,000
Clos. (4) Potter, Withdrawals 42,000 To close withdrawals.